Asia steadies as dust settles after FOMC, a quiet European session ahead

By FXStreet FXStreet (Mumbai) – The risk-off sentiment dominated Asia, as markets still remain cautious over the Fed’s decision and the extending uncertainty on the timing of the interest rate hike and the overall US economic prospects. The yen remained better bid while the Antipodeans saw a minor pullback from the post-FOMC lows.

Key headlines in Asia

RBA Stevens: Australian economy progressing, Aussie drop having effects

RBA Stevens: Confident Fed will hike rates this year

BoJ minutes: Sluggishness in key sectors only temporary

Dominating themes in Asia – centered on JPY, AUD, NZD

A low-key affair in Asia, with Central banks’ events having negligible impact on the Fx markets. The US dollar attempted a weak recovery against its major competitors following the Fed outcome-induced slump.

USD/JPY faded an impulsive spike to 120.40 levels and reverted to 119.80 as the US dollar remains undermined on the back of Fed’s decision to leave the interest rates unchanged on Thursday.

The Antipodean currencies managed to recover from the post-FOMC lows and consolidates to the upside as calm spreads after the massive volatility spurred by the Fed event. The Aussie is seen consolidating below 0.7200, with markets digesting RBA Stevens comments on the AUD levels. RBA Stevens told parliament, “More …read more

Source:: FX Street